IMPLEMENTING RULES AND REGULATIONS ON CONTROLLED CHEMICALSPURSUANT TO SECTION 4-C TO 4-F OF PD NO. 1866 AS AMENDED BY RA NO.9516

WHEREAS, Presidential Decree No. 1866 codified the laws on illegal/unlawfulpossession, manufacture, dealing in, acquisition or disposition, of firearms, ammunitionor explosives or instruments used in the manufacture of firearms, ammunition orexplosives;

WHEREAS, Republic Act No. 9516 amended the provisions of PresidentialDecree No. 1866 by inserting new sections i.e. 4-C, 4-D, 4-E and 4-F, to wit:

SEC. 4-C. Authority to Import, Sell or Possess Chemicals or Accessoriesfor Explosives. – Only persons or entities issued a manufacturer’s license,dealer’s license or purchaser’s license by the Philippine National Police(PNP)-Firearms and Explosives Division may import any of the chemicalsor accessories that can be used in the manufacture of explosives orexplosive ingredients from foreign suppliers, or possess or sell them tolicensed dealers or end users, as the case may be.

SEC. 4-D. Types of Chemical/Accessories Covered. – The chemicals andaccessories mentioned in the preceding Section shall exclusively refer tochlorates, nitrates, nitric acid and such other chemicals and accessoriesthat can be used for the manufacture of explosives and explosiveingredients.

SEC. 4-E. Record of Transactions. – Any person or entity who intends toimport, sell or possess the afore-cited chemicals or accessories shall filean application with the Chief of the PNP, stating therein the purpose forwhich the license and/or permit sought and such other information as maybe required by the said official. The concerned person or entity shallmaintain a permanent record of all transactions entered into in relationwith the afore-cited chemicals or accessories, which documents shall beopen to inspection by the appropriate authorities.

SEC. 4-F. Cancellation of License. – Failure to comply with the provisionof Section 4-C, 4-D, and 4-E shall be sufficient cause for the cancellationof the license and the confiscation of all such chemicals or accessories,whether or not lawfully imported, purchased or possessed by the subjector entity.

WHEREAS, the Chief of the Philippine National Police is mandated by law topromulgate the rules and regulations for the effective implementation of PresidentialDecree No. 1866 as amended by Republic Act No. 9516 to be approved by theSecretary of the Department of Interior and Local Government pursuant to PresidentialDecree No. 1878-A;

NOW THEN, the Chief of the Philippine National Police, pursuant to the saidmandate, hereby promulgates the following Implementing Rules and Regulations inorder to carry out the provisions of the aforementioned laws.

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Section 1. Short Title.

These Rules shall be known as the Implementing Rules and Regulations (IRR)on Controlled Chemicals.

Section 2. Definition of Terms.

For purposes of this IRR, the following terms or words and phrases shall meanor, to be understood as defined herein:

2.1. Academe – refers to Philippine universities, colleges, school andvocational institutes that are under the supervision of the Commission onHigher Education (CHED), Department of Education (DepEd) or TechnicalEducation Skills and Development Authority (TESDA).

2.2. Accessories – refer to any part, materials, ingredient, machinery, tool orinstrument of any explosive or incendiary whether mechanical, electronic,electrical other than chemical that can be used to ignite, initiate orenhance explosion.

2.3. Analytical/Testing Laboratory – refers to a facility competent to undertakechemical, biochemical, industrial, minerals, materials, and other types ofanalysis and therefore require chemicals to function.

2.4. CAS Number - refers to the number that is used to identify the chemical. Itis a unique numerical identifier assigned by Chemical Abstracts Service(CAS) to every chemical substance described in the open scientificliterature.

2.5. Certificate of Inspection – refers to the certificate issued by the PNP to theapplicant or licensee whose storage facility, site or branch has compliedwith all the inspection requirements set forth by the PNP.

2.6. CHED – refers to the Commission on Higher Education.

2.7. Contaminated Chemical – refers to a chemical with presence of unwantedsubstance making it unsuitable for consumption or use.

2.8. Controlled Chemicals – refer exclusively to chlorates, nitrates, nitric acidand such other chemicals categorized under Section 3.1 hereof that canbe used for the manufacture of explosives and explosive ingredients,where the explosive is capable or is intended to be made capable ofproducing destructive effect on contiguous objects or causing injury ordeath to any person.

2.9. Certificate of Balance – refers to the document issued by the PNPindicating the maximum quantity of controlled chemicals a licensee can beallowed to procure.

2.10. Certificate of Good Standing – refers to the certificate issued by the Chief,FEO attesting that a licensed entity has complied with all the requirementsof this IRR and has no derogatory report within the validity period of theexisting license.

2.11. CSG – refers to the Civil Security Group of the Philippine National Police.

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2.12. Dealer’s License – refers to the document issued to qualified persons orentities authorizing them to engage in the business of buying and sellingcontrolled chemicals at wholesale or retail.

2.13. DepEd – refers to the Department of Education.

2.14. DOH – refers to the Department of Health.

2.15. DOST – refers to the Department of Science and Technology.

2.16. DTI – refers to the Department of Trade and Industry.

2.17. End-User Declaration – refers to the document issued by the licenseddealers to the licensed DTI-certified micro and small enterprises,CHED/DepEd/TESDA-certified academe, DOST-accredited analytical/testing laboratories, DOH-accredited hospitals and Barangay-certifiedfarmers in the purchase and movement of certain controlled chemicals ina maximum allowable quantity.

2.18. EEMD – refers to the Education and Enforcement Management Division ofthe Firearms and Explosives Office.

2.19. EMD – refers to the Explosives Management Division of the Firearms andExplosives Office.

2.20. Entity – refers to juridical persons as provided under Article 44 of the CivilCode of the Philippines.

2.21. FEO – refers to the Firearms and Explosives Office of the PhilippineNational Police.

2.22. FEO License Revocation and Restoration Board (FLRRB) – refers to theFEO board with a regulatory function to study, review, validate, andrecommend the cancellation, restoration or imposition of administrativefine pursuant to Section 11.1 of this IRR of all issued licenses and/orpermits relative to controlled chemicals through a Resolution to beapproved by the Chief, PNP or his authorized representative.

2.23. GHS – refers to the Globally Harmonized System of classification andlabeling of chemical. It defines and classifies the hazard of chemicalproducts, and communicates health and safety information on labels andsafety data sheets.

2.24. Manufacturer’s License – refers to the document issued to qualifiedpersons or entities authorizing them to engage in the business ofmanufacturing controlled chemicals for purposes of sale or distribution.

2.25. Maximum Allowable Quantity:

2.25.1. For Special Permit to Purchase and Move Controlled Chemicals:Maximum allowable quantity refers to the quantity of a substance,not exceeding 10 liters for liquids and 10 kilograms for solid, whicha user can purchase and consume within a day.

2.25.2. For DTI-certified micro and small enterprises, CHED/DepEd/TESDA-certified academe, DOST-accredited analytical/testing

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laboratories, DOH-accredited hospitals and Barangay-certifiedfarmers: Maximum allowable quantity refers to the thresholdquantity of a substance, a user may purchase and consume withina year, to be determined by the PNP.

2.26. Mixture – refers to the combination of two or more pure substances inwhich each pure substance retains its individual chemical properties.

2.27. Permit to Export Controlled Chemicals (PECC) – refers to the documentissued to licensed persons or entities authorizing them to export controlledchemicals.

2.28. Permit to Import Controlled Chemicals (PICC) – refers to the documentissued to licensed persons or entities authorizing them to import controlledchemicals.

2.29. Permit to Purchase and Move Controlled Chemicals (PPMCC) – refers tothe document issued to licensed persons or entities authorizing them topurchase and move the controlled chemicals from the seller’s storagefacility to the purchaser’s storage facility.

2.30. Permit to Unload Controlled Chemicals (PTUCC) – refers to the documentissued to licensed persons or entities authorizing them to unload andtransport imported controlled chemicals from port of entry to the storagefacility as indicated in the approved license.

2.31. Permit to Transfer Controlled Chemicals (PTTCC) – refers to thedocument issued to licensed persons or entities authorizing them to moveand transport controlled chemicals from one storage facility to anotherstorage facility of the same licensee.

2.32. Permit to Transport Controlled Chemicals (PTCC) – refers to thedocument issued to licensed persons or entities authorizing them to moveand transport controlled chemicals from one storage facility to theDepartment of Environment and Natural Resources-EnvironmentManagement Bureau (DENR-EMB) accredited treatment facility.

2.33. Person – refers to the natural person pursuant to the Civil Code of thePhilippines.

2.34. PNP – refers to the Philippine National Police.

2.35. PNP Accredited Logistics Service Provider/Broker/Forwarder/Trucker –refers to a company-owned truck duly accredited by the PNP or a thirdparty logistics service provider/broker/forwarder/trucker holding itself to thegeneral public to provide transportation of controlled chemicals forcompensation and in the ordinary course of its business that is dulyaccredited by PNP.

2.36. Process Flowchart – refers to the description of the generic process flowwhere the controlled chemical/s will be used, including the purpose of theuse of the controlled chemical/s, and the quantity/purity requirement tojustify its procurement which must be prepared and signed by the personauthorized to use the controlled chemicals.

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2.37. Purchaser’s License – refers to the license issued to qualified persons orentities authorizing them to purchase and possess controlled chemicalsfor use in any lawful purposes.

2.38. Research and Development (R&D) Team – refers to the group to becommissioned by the SILG/Chairman, National police Commission(NAPOLCOM), composed of representatives from the PNP, DOST,academe and concerned industries, for the purpose of evaluation anddetermination of the explosive potential of a certain chemical.

2.39. RCSU – refers to the Regional Civil Security Unit of the Civil SecurityGroup.

2.40. ROPD – refers to the Regional Operations and Plans Division of thePolice Regional Office.

2.41. SILG – refers to the Secretary of the Interior and Local Government.

2.42. Security Survey Inspection Report – refers to the report rendered by thePNP regarding the compliance of an applicant or licensee on the physical,structural, and operational security of its storage facility, site or branch.

2.43. Special Permit to Purchase and Move Controlled Chemicals (SPPMCC) –refers to the document issued once to unlicensed but qualified personsand entities authorizing them to acquire/purchase controlled chemicals inmaximum allowable quantity for academic, scientific and other lawfulpurposes.

2.44. Storage Facility – refers to buildings, structures, storage tanks and/or silosused for the safe-keeping of controlled chemicals.

2.45. TESDA – refers to the Technical Education and Skills DevelopmentAuthority.

Section 3. Categorization of Controlled Chemicals:

3.1. The Controlled Chemicals shall be categorized into High-Risk and Low-Risk as provided in the List of Controlled Chemicals under Annex A of this IRR.

3.2. The Chief, PNP can update the List of Controlled Chemicals and placenew chemicals or mixtures under regulation and, for this purpose, may consult with theResearch and Development Team from time to time. The Research and DevelopmentTeam shall use available scientific methodology and security information in evaluatingand determining the explosive potential of such new chemicals. The Research andDevelopment Team shall provide the Chief, PNP with the results within fifteen (15)working days from commencement of its evaluation and determination processes.

3.3. However, in the interest of public safety or peace and order, the Chief,PNP can, motu propio update the List of Controlled Chemicals and place newchemicals or mixtures under regulation, to take effect immediately, but with due regardto affected new chemicals or mixtures that are still in transit or already in circulation.Within fifteen (15) working days from effectivity, the updated list may be endorsed to theResearch and Development Team, for evaluation and determination. The Research and

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Development Team shall provide the Chief, PNP with the results within fifteen (15)working days from the commencement of its evaluation and determination process.

Section 4. License to Manufacture, Deal and Purchase Controlled Chemicals.

4.1. Any person or entity desiring to engage in the business of manufacturing,dealing in and/or purchasing controlled chemicals shall first secure the appropriatelicense for such purpose.

4.2. Authority to issue Manufacturer’s License, Dealer’s License andPurchaser’s License:

4.2.1. The approving authority for application for Manufacturer’s License,Dealer’s License, and Purchaser’s License shall be the Chief, PNP.

4.2.2. However, amendment and renewal of Manufacturer’s License andDealer’s License may be delegated to the Director, Civil SecurityGroup and the Chief, Firearms and Explosives Office, respectively.

4.2.3. The approving authority for a new application for Purchaser’sLicense to include its amendment may be delegated to the Director,Civil Security Group, while its renewal may be delegated to theChief, FEO.

4.2.4. The approving authority for Purchaser’s License for DTI-certifiedsmall enterprises, CHED/DepEd/TESDA-certified academe, DOST-certified analytical/testing laboratories, and DOH-certified hospitalsto include its amendment and renewal may be delegated to theChief, FEO.

4.2.5. The approving authority for Purchaser’s License for DTI-certifiedmicro enterprises and Barangay-certified farmers to include itsamendment and renewal may be delegated to the Chief, FEO forMetro Manila applicants and Chief, RCSU for outside Metro Manilaapplicants. Pending the full activation of RCSU, the Chief, FEOshall be the approving authority.

4.2.6. The only permissible grounds for amendment of license shallexclusively refer to: change of corporate/business name and/oraddress, establishment of additional or change of storage facility orbranch, inclusion of additional controlled chemicals, increase inquantity, and/or deletion of controlled chemicals.

4.3. Application for licenses shall be in the name of and shall be representedby the owner, in case of sole proprietorships or partnerships, or, in case of corporations,by the president in any corporate officer or member of the Board empowered through aSecretary’s Certificate.

The applicant may duly authorize a representative to process theapplication through a Special Power of Attorney (SPA) stating the he/she had beenauthorized for the purpose of processing the application for license.

4.4. The quantity applied for in the license shall consider the following factors,such as but not limited to usage and storage facility.

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4.5. Requirements for Issuance of License: The following documentaryrequirements in original or authenticated copies shall be submitted to acquireManufacturer’s License, Dealer’s License, or Purchaser’s License to include itsamendment and renewal:

4.5.1. For New Application of License:

a. Duly accomplished Application Form;

b. For local corporation/partnership: Certificate of Registration ofthe firm with the Securities and Exchange Commission (SEC) toinclude its machine validated Articles of Incorporation andGeneral Information Sheet (GIS);

For Foreign multi-corporation: SEC Registration to do businessin the Philippines;

For Single Proprietorship: Certificate of Registration with theDepartment of Trade and Industry (DTI);

c. Personal Data Sheet (PDS) of the applicant and themanagement personnel of the storage facility/warehouse wherethe controlled chemicals are stored;

d. NBI Clearance of the applicant;

e. Business Permit;

f. Process flowchart (for manufacturer and purchaser only);

g. Material Safety Data Sheet (MSDS)/Safety Data Sheet (SDS) ofcontrolled chemicals to be provided by the supplier;

h. Vicinity map of the factory and storage facility showing distancefrom the nearest Police Headquarters;

i. Floor/Location Plan of the storage facility;

j. Properly labeled pictures (8”x10” in size) of storage facilityprinted in photo paper;

k. For Metro Manila applicants: Security Survey Inspection Reportfrom the Chief of Police of the concerned Police Station andCertificate of Inspection from the Chief, EEMD, FEO.

For outside Metro Manila applicants: Security Survey InspectionReport from the Provincial Director, Police Provincial Office(PPO)/City Director, City police Office (CPO) and Certificate ofInspection from the RCSU or the Provincial Director, PPO/CityDirector, CPO pending full activation of the RCSU.

l. Proof of payment from the Land Bank of the Philippines.

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4.5.2. For Amendment of License:

a. Duly accomplished Application Form;

b. In case of additional controlled chemicals:1) Process flowchart;2) Material Safety Data Sheet (MSDS)/Safety Data Sheet

(SDS) of the controlled chemicals to be provided by thesupplier; and

3) For Metro Manila applicants: Security Survey InspectionReport from the Chief of Police of the concerned PoliceStation and Certificate of Inspection from Chief, EEMD,FEO.

For outside Metro Manila applicants: Security SurveyInspection Report from the Provincial Director, PPO/CityDirector, CPO and Certificate of Inspection from the RCSUor the Provincial Director, PPO/City Director, CPO pendingfull activation of the RCSU.

c. In case of increase in quantity of controlled chemicals and/orestablishment of additional storage facility:1) Notarized latest Monthly Consumption Report;2) Properly labeled pictures (8”x10” in size) of the additional

storage facility printed in photo paper; and3) For Metro Manila applicants: Security Survey Inspection

Report from the Chief of Police of the concerned PoliceStation and Certificate of Inspection from Chief, EEMD,FEO.

For outside Metro Manila applicants: Security SurveyInspection Report from the Provincial Director, PPO/CityDirector, CPO and Certificate of Inspection from the RCSUor the Provincial Director, PPO/City Director, CPO pendingfull activation of the RCSU.

d. In case of change of storage facility:1) Duly accomplished Application Form;2) Business Permit;3) Vicinity map of the factory and storage facility showing

distance from the nearest Police Headquarters;4) Floor/Location Plan of the storage facility;5) Properly labeled pictures (8”x10” in size) of the storage

facility printed in photo paper;6) For Metro Manila applicants: Security Survey Inspection

Report from the Chief of Police of the concerned PoliceStation and Certificate of Inspection from Chief, EEMD,FEO.

For outside Metro Manila applicants: Security SurveyInspection Report from the Provincial Director, PPO/CityDirector, CPO and Certificate of Inspection from the RCSUor the Provincial Director, PPO/City Director, CPO pendingfull activation of the RCSU.

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e. In case of change in corporate/business address:

1) For local corporation or partnership: Certificate ofRegistration of the firm with the SEC to include its machinevalidated Articles of Incorporation and GIS;

For Foreign Multi-corporation: SEC Registration to dobusiness in the Philippines;

For Single Proprietorship: Certificate of Registration withDTI;

2) Business Permit;

3) Vicinity map of the factory and storage facility showingdistance from the nearest Police Headquarters;

4) Floor/Location Plan of the storage facility;

5) Properly labeled pictures (8”x10” in size) of storage facilityprinted in photo paper; and

6) For Metro Manila applicants: Security Survey InspectionReport from the Chief of Police of the concerned PoliceStation and Certificate of Inspection from Chief, EEMD,FEO.

For outside Metro Manila applicants: Security SurveyInspection Report from the Provincial Director, PPO/CityDirector, CPO and Certificate of Inspection from the RCSUor the Provincial Director, PPO/City Director, CPO pendingfull activation of the RCSU.

f. In case of change of corporate/business name:

For corporation or partnership: Certificate of Registration of thefirm with SEC to include its machine validated Article ofIncorporation and GIS;

For foreign multi-corporation: SEC Registration to do businessin the Philippines;

For Single Proprietorship: Certificate of Registration with DTI;

4.5.3. For Renewal of License:

a. Duly accomplished Application Form;

b. Business Permit;

c. For Metro Manila applicants: Security Survey Inspection Reportfrom the Chief of Police of the concerned Police Station andCertificate of Inspection from the Chief, EEMD, FEO.

For outside Metro Manila applicants: Security Survey InspectionReport from the Provincial Director, PPO/City Director, CPO and

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Certificate of Inspection from the RCSU or from the ProvincialDirector, PPO/City Director, CPO pending full activation of theRCSU; and

d. Proof of payment from the Land Bank of the Philippines.

4.6. The PDS and NBI clearance of the applicant shall be submitted if theapplicant for amendment or renewal of license is different from theapplicant during the new application.

4.7. The applicant shall inform the PNP through the EMD, FEO in case ofchange in the management personnel of the storage facility/warehousewhere the controlled chemicals are stored.

4.8. All documentary requirements should be valid at the time of filing of theapplication.

4.9. All licenses shall be valid for a period of one year from the date ofissuance. If an application for renewal is filed at least 60 calendar daysprior to its expiration date, the expiring license shall remain valid until adecision is rendered on the application for renewal. The FEO is enjoinedto act on all applications for renewal within the 60 calendar days.

4.10. Licensee with expired license shall be given until six months to renew itslicense subject to imposition of administrative fines. Pending renewal ofthe expired license, licensee is prohibited to exercise the authorities asprovided under Section 5 of this IRR. After six months of non-renewal, thePNP shall undertake action to confiscate all such controlled chemicals,whether or not lawfully imported, purchased or possessed by the licensedmanufacturer, delaer or purchaser.

4.11. Administrative Fines shall be imposed on expired licenses, as follows:

MONTH/S AFTER EXPIRATION SURCHARGE/PENALTY1 – 30 calendar days 10% of the approved fee31 – 60 calendar days 20% of the approved fee61 – 90 calendar days 30% of the approved fee91 – 120 calendar days 40% of the approved fee121 – 150 calendar days 50% of the approved fee151 – 180 calendar days 100% of the approved fee

181 calendar days and aboveCause for confiscation of all such controlled chemicals

4.12. In the application for renewal, the Chief, PNP or his authorizedrepresentative may grant a license for a longer validity period but not morethan three years on the basis of good standing without prejudice to theInspection under Section 8 and Cancellation under Section 10 of this IRR.

Section 5. Scope of License to Manufacture, Deal in and Purchase ControlledChemicals.

5.1. The scope of the Manufacturer’s License shall include the following:

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5.1.1. The authority to manufacture controlled chemicals within sites,areas, and factories stated in the license;

5.1.2. The authority to deal in or sell all the items manufactured asapproved in the manufacturer’s license to licensed persons andentities;

5.1.3. The authority to purchase and/or import controlled chemicals asreflected in the approved Manufacturer’s License;

5.1.4. The authority to export the items manufactured; and

5.1.5. The authority to subcontract the manufacturing/processing ofcontrolled chemicals; however, the subcontractor shall secure aManufacturer’s License to manufacture such controlled chemicals.

5.2. The scope of the Dealer’s License shall include the following:

5.2.1. The authority to deal in or sell all controlled chemicals as reflectedin the approved Dealer’s License to licensed persons and entities;

5.2.2. The authority to deal in or sell certain controlled chemicals to DTI-certified micro and small enterprises, CHED/DepEd/TESDA-certified academe, DOST-certified analytical/ testing laboratories,DOH-certified hospitals, and Barangay-certified farmers at theprescribed maximum allowable quantity. However, licensed dealersshall adhere to the policy/guidelines on the issuance of “End-UserDeclaration” and reportorial requirements for every deal or sale ofcontrolled chemicals; and

5.2.3. The authority to purchase and/or import controlled chemicals asreflected in the approved Dealer’s License;

5.3. The scope of the Purchaser’s License shall include the following:

5.3.1. The authority to purchase and/or import controlled chemicals asreflected in the approved Purchaser’s License.

5.3.2. The authority to use and process the controlled chemicals toproduce its desired product, except the manufacture of anothercontrolled chemicals; and

5.3.3. The authority to subcontract the manufacturing/processing ofproducts or chemicals not categorized as controlled chemicals;however, the subcontractor shall secure a Purchaser’s License tomanufacture such product or substance using controlled chemicals.

5.4. The scope of the Purchaser’s License for DTI-certified small enterprises,CHED/DepEd/TESDA-certified academe, DOST-certified analytical/ testing laboratories,and DOH-certified hospitals:

5.4.1. The authority to purchase certain controlled chemicals as reflectedin the approved Purchaser’s License within the maximum allowablequantity without the necessary permit;

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5.4.2. The authority to use and process the controlled chemicals toproduce its desired product, except the manufacture of anothercontrolled chemicals; and

5.4.3. Applicant shall only submit a duly accomplished Application Form,certification from the concerned agency and proof of payment fromthe Land Bank of the Philippines.

5.5. The scope of the Purchaser’s License for DTI-certified micro enterprisesand Barangay-certified farmers:

5.5.1. The authority to purchase certain controlled chemicals as reflectedin the approved Purchaser’s License within the maximum allowablequantity without the necessary permit;

5.5.2. The authority to use and process the controlled chemicals toproduce its desired product, except the manufacture of anothercontrolled chemicals; and

5.5.3. Applicant shall only submit a duly accomplished Application Formand certification from the concerned agency.

5.6. Importation.

5.6.1. Any licensed persons or entities desiring to import controlledchemicals shall submit their application to the Chief, PNP throughthe Chief, FEO for Metro Manila applicants or the ProvincialDirector, PPO/City Director, CPO for outside Metro Manilaapplicants.

5.6.2. Permit to Import Controlled Chemicals (PICC) for manufacturesand dealers shall be for the approval of the Chief, PNP while PICCfor purchasers shall be for the approval of the Director, CSG.

5.6.3. For initial importation, application to import may be filed for suchquantities as may be needed by the licensee for one-year periodbased on the storage capacity multiplied by 12 months plus 25%.For the succeeding importation, application to import may be filedfor such quantities as may be needed by the licensee for one-yearperiod based on the maximum annual average for the past threeyears plus 25%.

However, the licensee shall schedule the unloading of controlledchemicals in such a way that when received shall not exceed theauthorized capacity of the storage facility including actual stock onhand upon arrival of the shipment.

5.6.4. At least ten working days before the arrival of controlled chemicalsunder the Permit to Import Controlled Chemicals (PICC), thelicensee-importer may apply for Permit to Unload ControlledChemicals (PTUCC) to the Chief, FEO or the Chief, RCSU.Pending full activation of the RCSU, all PTUCC shall be for theapproval of the Chief, FEO.

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5.6.5. Permit to Unload Controlled Chemicals (PTUCC) shall serve as theauthority of the licensee-importer to unload the controlled chemicalsfrom the port of entry and transport the same to the storage facilityas indicated in the license. Shipment unloaded and transportedshall be deducted from the PICC in the Certificate of Balance.

5.6.6. Documentary requirements for applying Permit to Import ControlledChemicals (PICC):

a) Duly accomplished Application Form;b) Inventory Report from Chief, EEMD, FEO or Chief, RCSU or

from the Provincial Director, PPO/City Director, CPO pendingfull activation of the RCSU; and

c) Proof of payment from the Land Bank of the Philippines.

5.6.7. Documentary requirements for applying Permit to UnloadControlled Chemicals (PTUCC):

a) Duly accomplished Application Form;b) Copy of Permit to Import with Certificate of Balance;c) Notarized latest Monthly Consumption Report;d) Commercial/Proforma Invoice for sea freight or for air freight in

lieu of Bill of Lading or Airway Bill;e) Certification from the licensee with confirmation from the PNP

accredited logistic service provider/broker/forwarder/trucker; andf) Proof of payment from the Land Bank of the Philippines.

5.7. Exportation

5.7.1. Any licensed manufacturers desiring to export controlled chemicalsshall submit their applications to the Chief, PNP through the Chief,FEO for Metro Manila applicants or the Provincial Director,PPO/City Director, CPO for outside Metro Manila applicants.

5.7.2. Permit to Export shall serve as the authority of the licensedmanufacturers to export controlled chemicals and to move/transportthe controlled chemicals from the licensed manufacturer’s storagefacility to the port of exit.

5.7.3. Permit to Export shall be for the approval of the Chief, PNP or hisauthorized representative.

5.7.4. Documentary Requirements for application for Permit to Export:

a) Original Letter of Intent and End-User’s Certificate of theConsignee; and

b) Certification from the licensee-exporter with confirmation fromthe PNP accredited logistic service provider/broker/forwarder/trucker.

5.8. Local purchase and movement of controlled chemicals.5.8.1. Any licensed person or entity desiring to purchase controlled

chemicals shall submit their application to the Chief, PNP throughthe Chief, FEO for Metro Manila applicants or to the ProvincialDirector, PPO/City Director, CPO for outside Metro Manilaapplicants.

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5.8.2. Permit to Purchase and Move Controlled Chemicals (PPMCC) shallserve as the authority of the purchaser to move and transport thecontrolled chemicals from the seller’s storage facility to thepurchaser’s storage facility as indicated in the license.

5.8.3. Permit to Purchase and Move Controlled Chemicals (PPMCC) shallbe for the approval of the Chief, FEO or the Chief, RCSU. Pendingfull activation of the RCSU, all PPMCC shall be for the approval ofthe Chief, FEO.

5.8.4. The whole quantity specified in the permit shall be sold anddelivered to the purchaser. If for some reasons the whole quantitycannot be delivered at one time, permission shall be requestedfrom the Chief, FEO or the Chief, RCSU who shall specify the kindsand quantities of controlled chemicals to comprise each partialdelivery which should be proportionate to the kinds and quantitiesin the original permit.

5.8.5. Documentary requirements for applying Permit to Purchase andMove Controlled Chemicals (PPMCC):

a) Duly accomplished Application Form;b) Endorsement from Provincial Director, PPO/City Director, CPO

(for provincial applicant);c) Certification from the licensee with confirmation from the PNP

accredited logistic service provider/broker/forwarder/trucker; andd) Proof of payment from the Land Bank of the Philippines.

5.9. Permit to Transfer Controlled Chemicals (PTTCC)

5.9.1. Any licensed manufacturer or dealer who needs to move andtransport controlled chemicals from one storage facility to anotherstorage facility of the same licensee shall apply for Permit toTransfer.

5.9.2. Permit to Transfer Controlled Chemicals (PTTCC) shall be for theapproval of the following:

a) Provincial Director, PPO/City Director, CPO, if the movementand transportation of controlled chemicals is within theprovince/city.

b) Chief, RCSU if the movement and transportation of controlledchemicals transcends provincial boundaries of the same region.Pending full activation of the RCSU, the Regional Director, PROshall be the approving authority.

c) Chief, FEO, if the movement and transportation of controlledchemicals transcends regional boundaries.

5.9.3. Documentary requirements for applying Permit to TransferControlled Chemicals:

a) Duly accomplished Application Form; and

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b) Certification from the licensee with confirmation from the PNPaccredited logistic service provider/broker/forwarder/trucker.

5.10. Special Permit to Purchase and Move Controlled Chemicals (SPPMCC):

5.10.1. Any person or entity not licensed as manufacturer, dealer orpurchaser desiring to acquire/purchase controlled chemicals on amaximum allowable quantity for academic, scientific and otherlawful purposes shall apply to the Chief, FEO through the Chief,EMD FEO for Metro Manila applicants or to the Provincial Director,PPO/City Director, CPO for outside Metro Manila applicants.

5.10.2. Special Permit to Purchase and Move Controlled Chemicals(SPPMCC) shall serve as the authority of the purchaser to moveand transport controlled chemicals from the seller’s storage facilityto the purchaser’s storage facility as indicated in the permit.Subsequent purchases shall require application for a Purchaser’sLicense.

5.10.3. Special Permit to Purchase and Move Controlled Chemicals(SPPMCC) shall be for the approval of the Chief, FEO or the Chief,RCSU. Pending full activation of the RCSU, all SPPMCC shall befor the approval of the Chief, FEO.

5.10.4. Documentary requirements:

a) Duly accomplished Application Form;b) Personal Data Sheet (PDS) of the applicant ;c) NBI Clearance of the applicant; andd) Proof of payment from the Land Bank of the Philippines.

5.11. Unless earlier cancelled, the validity of permits shall be as follows:

5.11.1. For Permit to Import Controlled Chemicals (PICC), valid for oneyear from the date of issuance.

5.11.2. For Permit to Export Controlled Chemicals (PECC), valid for oneyear from the date of issuance.

5.11.3. Permit to Purchase and Move Controlled Chemicals (PPMCC),valid for a period of 60 calendar days from the date of issuance.

5.11.4. Permit to Transfer Controlled Chemicals (PTCC), valid for aperiod of 30 calendar days from the date of issuance.

5.12. All movement and transportation of controlled chemicals shall not bedelayed.

5.13. Pending operationalization of the PNP accredited logistics serviceprovider/broker/forwarder/trucker, one police security escort shall be required for everymovement and transportation of high-risk controlled chemicals.

5.14. All licensed persons and entities to include PNP accredited logisticsservice provider/broker/forwarder/trucker must observe the Guidelines in the Movementand Transportation of Controlled Chemicals as provided under Annex B of this IRR.

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Section 6. Issuance of Licenses/Permits and Payment of Fees.

6.1. Licenses and permits shall be issued only upon the compliance with all therequirements including the payment of the prescribed fees.

6.2. The procedures in the processing of licenses and permits of controlledchemicals to include the fees and charges are provided under Annex C and Annex D ofthis IRR, respectively.

Section 7. Registration and Accreditation of Logistics Service Provider/Broker/Forwarder/Trucker of Controlled Chemicals.

7.1. Except in cases of movement and transportation of certain controlledchemicals in maximum allowable quantity, as may be prescribed, only PNP accreditedlogistics service provider/broker/forwarder/trucker shall be utilized in the movement andtransportation of controlled chemicals.

7.2. The PNP, through the CSG, shall formulate policies and guidelines for theoperationalization of PNP accredited logistics service provider/broker/forwarder/truckerto be utilized in the movement and transportation of controlled chemicals.

Section 8. Record of Transactions, Inventory and Inspection.

8.1. All licensed manufacturers, dealers and purchasers shall maintain apermanent record of all transactions entered into in relation with the controlledchemicals, such as the following: inventory report of controlled chemicals to includeimportation, exportation, local purchase, sales report, consumption/production reportswith delivery receipts, and other reports that the Chief, PNP may require.

8.2. The retention period for records and reports of all transactions shall be forfive (5) years.

8.3. Notarized Monthly Consumption Reports with delivery receipts shall besubmitted on or before the fifteenth (15th) day of the following month to the FEO throughthe EMD, FEO for licensee in Metro Manila and RCSU for licensee outside MetroManila. Pending full activation of RCSU, all reports shall be submitted to the EMD, FEO.

8.4. The PNP through the FEO or any office authorized by the Chief, PNPshall inspect the storage facility and/or examine the inventory and records of licensedmanufacturer, dealer or purchaser for licensing, inventory, monitoring purposes and/orinvestigation as the case may be.

8.5. The inspection of storage facility and/or examination of records andinventories shall be conducted during office hours (8:00 AM to 5:00 PM). The InspectionTeam shall be covered with a Letter Order.

8.6. The Inspection Team shall furnish the applicant or the licensee throughthe Head of the Storage Facility, a copy of the initial result of the inspection,immediately thereafter.

8.7. In case of adverse findings, the applicant or licensee, as the case maybe,shall be given thirty (30) working days from receipt of result of the inspection, withinwhich to comply with the recommendations of the Inspection Team. Non-compliance

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with said recommendations, within the given period, shall be a ground for thedisapproval of the application for license or cancellation of the license.

8.8. The procedures of inspection are provided under Annex D of this IRR.

Section 9. Storage and Disposal of Controlled Chemicals:

9.1. Licensed persons or entities shall comply with the specific requirementson storage facility as provided under Annex E of this IRR.

9.2. The storage facility shall comply with the storage requirements stated inthe Material Safety Data Sheet (MSDS)/Safety Data Sheet (SDS) of the chemical beingapplied for.

9.3. Disposal of unused, contaminated and/or expired controlled chemicalsmust be reported to the FEO or RCSU for issuance of Permit to Transport and must becoordinated with the DENR-EMB. The licensee must submit to the PNP through FEO orRCSU a copy of the Certificate of Treatment issued by an accredited DENR-EMBtreatment facility. Pending the full activation of the RCSU, the aforementioned certificateshall be submitted to the FEO.

Section 10. Certificate of Good Standing.

10.1. The Chief, FEO may issue a Certificate of Good Standing to licensedpersons or entities.

10.2. The licensed persons or entities must possess all the qualifications andnone of the disqualifications as provided for in the parameters attached to this IRR asAnnex F.

10.3. Violation of any of the parameters provided in Annex F of this IRR shallcause the cancellation of the Certificate of Good Standing.

Section 11. Cancellation of License.

11.1. The Chief, PNP or his authorized representative through therecommendation of FLRRB shall impose the following penalties for failure to maintain apermanent record of all transactions, failure to submit reports on monthly basis,submission of erroneous reports on a monthly basis, or submission of non-notarizedreport:

Offense PenaltyFirst Offense 50% of the approved license feeSecond Offense 100% of the approved license feeThird Offense Cancellation of the license and cause confiscation of all such

controlled chemicals, whether or not lawfully imported, purchasedor possessed by the licensed manufacturer, dealer or purchaser.

11.2. The Chief, PNP or his authorized representative through therecommendation of FLRRB shall cancel the license and undertake appropriate actionsto confiscate all such controlled chemicals, whether or not lawfully imported, purchasedor possessed by the licensed manufacturer, dealer or purchaser on any of the followinggrounds:

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11.2.1. Possession, importation, manufacture or selling of controlledchemicals not covered in the approved license;

11.2.2. Selling or transfer of controlled chemicals to unlicensed person orentity unless otherwise exempted;

11.2.3. Purchase of controlled chemical from unlicensed person or entity;

11.2.4. Movement and transportation of controlled chemicals without PNPappropriate permit;

11.2.5. Use of unaccredited logistic service provider/broker/forwarder/trucker in the movement and transportation of controlledchemicals;

11.2.6. Disposal of unused, contaminated and expired controlledchemicals without the PNP appropriate permit; and

11.2.7. Submission of falsified document in the application of licenseand/or permit.

Section 12. Penalties

The criminal penalties as provided under Sections 3-A, 3-B, 3-C, 3-D, 4 and 4-Aof Presidential Decree No. 1866 as amended by Republic Act No. 9516 shall beapplicable.

Section 13. Authority of the Chief of the Philippine National Police (PNP) to IssuePolicies and Guidelines.

13.1. The Chief, PNP may revise this IRR and its Annexes in consultation withthe concerned sectors of society and with the approval of the Secretary of the Interiorand Local Government to be published in the Official Gazette and to be submitted to theUP Law Center.

13.2. For effective implementation of the law and this IRR, the Chief, PNP mayalso issue relevant policies and guidelines to be submitted to the UP Law Center.

Section 14. Application of Information and Communication Technology.

The PNP shall develop and utilize information and communication technology toenhance regulation and to support cost-effective and efficient operations.

Section 15. Separability Clause.

If, for any reason, any provision of this IRR is declared to be unconstitutional orinvalid, the other sections or provisions thereof which are not affected thereby shallcontinue to be in full force and effect.

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Section 16. Repealing Clause.

16.1. All other rules, regulations, orders, memorandum circulars which areinconsistent herewith are hereby repealed or modified accordingly.

16.2. All other rules, regulations, orders, memorandum circulars on explosivesand accessories which are not inconsistent herewith shall continue to be in full forceand effect.

Section 17. Transitory Provision.

17.1. Any person or entity who at the time of the effectivity of this IRR had beenlicensed shall be considered as licensed under the provisions of this IRR until theexpiration of such license and shall be governed by the provisions hereof.

17.2. Any person or entity who at the time of the effectivity of this IRR had beenissued a temporary license or regular license and affected by this IRR shall continue tooperate and shall have sixty (60) calendar days from the effectivity of this IRR withinwhich to comply or undertake appropriate action.

Section 18. Effectivity.

This IRR shall take effect after fifteen days from its publication in the OfficialGazette and submission to the UP Law Center.

(Sgd) RICARDO C MARQUEZPolice Director GeneralChief, PNP

Approved: June 9, 2016

(Sgd) MEL SENEN S. SARMIENTOSecretary, DILG

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ANNEX ALIST OF CONTROLLED CHEMICALS

The following are the list of controlled chemicals:

A. HIGH-RISK CONTROLLED CHEMICALS:

No. Chemical Name Chemical Formula CAS Number1 Ammonium Cerium (IV) Nitrate Ce(NH4)2(NO3)6 16774-21-32 Ammonium Nitrate (NH4)(NO3) 6484-52-2

3Fertilizer containing ≥ 70%Ammonium Nitrate

4 Ammonium perchlorate NH4ClO4 14787-73-05 Calcium Nitrate Ca(NO3)2 10124-37-56 Guanidinium Nitrate CH6N4O3 506-93-47 Hydrogen peroxide, >52% H2O2 7722-84-18 Magnesium perchlorate Mg(ClO4)2 10034-81-89 Nitric Acid, >3% HNO3 7697-37-210 Potassium Nitrate ≥ 40% KNO3 7757-79-111 Potassium perchlorate ≥ 40% KClO4 7778-74-712 Potassium permanganate KMnO4 7722-64-713 Sodium Chlorate ≥ 40% NaClO3 7775-09-914 Sodium Nitrate NaNO3 7631-99-415 Sodium perchlorate > 40% NaClO4 7791-07-3

B. LOW-RISK CONTROLLED CHEMICALS:

No. Chemical Name Chemical Formula CAS Number1 Aluminium granular/powder Al 7429-90-52 Ammonium chlorate NH4ClO3 10192-29-73 Barium chlorate Ba(ClO3)2 13477-00-44 Barium chromate BaCrO4 10294-40-35 Barium Nitrate Ba(NO3)2 10022-31-86 Calcium chlorate Ca(ClO3)2 10137-74-37 Chromium (III) Nitrate Cr(NO3)3 7789-02-88 Copper Nitrate (Cupric nitrate) Cu(NO3)2 10031-43-3 (trihydrate)9 Ferric (III) Nitrate Fe(NO3)3 782-61-810 Hydrogen peroxide, 13-52% H2O2 7722-84-111 Nickel (II) Nitrate Ni(NO3)2 13138-45-912 Potassium chlorate, < 40% KClO3 3811-04-913 Potassium Nitrate, < 40% KNO3 7757-79-114 Potassium perchlorate, < 40% KClO4 7778-74-715 Sodium Chlorite, > 40% NaClO2 7758-19-216 Sodium perchlorate, ≥ 40% NaClO4 7791-07-317 Sulfur powder/flakes S8 7704-34-9

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